Around four years ago, my mother took out a Sallie Mae Parent Plus Loan for a high substantial amount. She is listed as the borrower and my grandmother is listed as the co-borrower. I did a credit check earlier this year and Sallie Mae appears against me on my credit as an unpaid loan. I was under the impression that since I am not listed as the borrower or co-borrower that I am not responsible for the loan itself. Sallie Mae seems to think otherwise and has penned me as the co-signer. As a result, my credit is hereby effectively ruined. I have considered bankruptcy, did a little research, and it seems that this loan will not be affected after I file. It will still need to be paid off. I was hoping to garner some advice on who I could speak to about my situation. Any reply is appreciated! -Mariachi
You could start by disputing the debt as "not yours" with the CRA that lists it. If you're not listed as the borrower, then it should come off. If that doesn't work, then you could try contacting Sallie Mae to see what the deal is (i.e. why it's showing up on your report).
Bankruptcy is an extreme option for this, especially since it seems to be an error on SLM's part. Unless there's some detail we're missing, it doesn't seem like you can be held responsible for the loan. As ccbob said, dispute with the CRAs as "not mine". Once the CRAs see the loan is in "Sally" and your name is "John" I think that'll be the end of it. If not, come back and we'll try to help you some more. But no matter what happens, I wouldn't pay a dime on the debt and I would NOT file for bankruptcy.
I'm going to go ahead and dispute this and see what the outcome is. I'm also going to track down documentation that states that I am not the borrower or co-borrower, which does exist according to my mother. If I'm still stuck in this situation I will come back and let you guys know.
